This firm has a radical new plan to keep clients focused on long-term investing

The longer you invest your money with Ritholtz Wealth
Management, the less it will cost you.

On Wednesday, Ritholtz Wealth Management, which is run by
financial media personalities and long-time investment pros
Josh Brown and
Barry Ritholtz,
announced that it will lower fees for clients invested with
the firm for at least three years. Ritholtz Wealth
Management opened its doors two years ago today.

The firm said that effective immediately, upon completion of
their 36th month clients are eligible for reduced fees, with this
resulting in savings of approximately 16% per year in fees,
according to the firm.

In his article, Zweig noted that at least one hedge fund in
Boston had enacted a similar strategy, reducing fees for clients
that committed to three-, five-, or seven-year-long investment
periods.

Zweig wondered why mutual fund weren't rewarding clients for
similar behavior, and Brown said this article was a
"eureka" moment for the firm.

Brown added that, "We constantly preach the message that
behavior is the most important determinant of investment success
over the long term. The ability to stick with a sensible strategy
will have a greater effect on future outcomes than the state of
the economy, level of interest rates, valuation of the stock
market or fund selection."

Recently, we noted that amid the recent stock market
chaos it was important for investors to keep in mind
that while conditions can get rocky over the
short-term, continuing to invest money on a consistent
schedule will yield long-term gains.

Take, for example, the difference between $50 a month in the
S&P 500 against holding that money in cash.

Business
Insider/Andy Kiersz, data from Yahoo Finance

And this chart from Vanguard shows the amount of money lost
to fees on a hypothetical account that starts at $100,000 and
grows 6% each year with gains reinvested. The amount lost to
fees over this time frame is really staggering (to say
nothing of the returns, which after 20 years seem so-so before
really taking off in the last decade: compounding interest is
your friend).